How do I know that my money is safe? | Money Matters

We put a lot of trust in the banks and building societies that hold our money. But if they ever went bust, this could put our entire livelihoods in jeopardy. Thankfully, there is a scheme in place to protect you if they do. Sam Woods, Chief Executive Officer of our Prudential Regulation Authority (PRA), talks to Jamilla Blake about the Financial Services Compensation Scheme (FSCS) – which protects the money in your account up to £120,000 per bank. This means that, if your bank went out of business, you could get a lot (if not all) of it back. He explains the process of getting your money back and the importance of making sure that any funds over £120,000 are spread across different banks – as opposed to different brands owned by the same bank. He also talks about the role of the PRA in giving the people of the UK financial confidence and maintaining a healthy economy. This month, Tom Heath is back on the City streets finding out if anyone has ever even heard of the FSCS. ℹ️ This video is not financial advice. The views expressed in the podcast are those of the hosts and guests, and not necessarily those of the Bank of England or its committees. 00:00 coming up... 00:50 Jamilla's intro 01:28 Tom asks the public 02:44 Jamilla introduces Sam 03:10 Sam talks about his role 03:38 Explaining FSCS 03:50 FSCS and PRA's role 04:33 Amount of money protected 05:15 Why should you care? 05:50 How to check your bank 07:12 How FSCS work when things go wrong 07:44 What 'financial confidence' means to Sam 08:22 Why it matters for everyone 09:10 FSCS and PRA's responsibilities 09:51 Larger balances (such as home sale) 10:48 What accounts FSCS applies to 11:13 PRA and Bank of England's role 11:36 Quick fire questions! 17:17 One thing to do next